Tips to Help You Prepare Before You Apply for a Mortgage

By Irma Sebastiano August 03 2018 Comments

Whether you are getting ready to make your very first house purchase or whether you are looking into other mortgage tools such as refinancing, second mortgages or reverse mortgages, you want everything to go as smoothly as possible. Because you know – the smooth the mortgage application goes, the fast you can move into your new home or access equity from your current one.

But did you realize there are things you can do even before you apply for a mortgage to help everything go smoothly? It’s true! Here are some of my top tips for things you can do to prepare for applying for a mortgage.

1. Build up your credit.

Yes, even if you have poor credit there is a good chance that I can help you get a mortgage. But you will be able to get better rates and terms if you have already started building or repairing your credit. If you plan to buy a home within the next few years start working on your credit. Try to pay off outstanding debts and most importantly make sure you are making your payments on time.

2. Start working with a mortgage broker.

While it is possible to get a mortgage through your bank, this is often not your best option. Banks can only sell their own products, but a good mortgage broker works with a large pool of lenders so that they can shop around to help get you the best rates and terms for your situation.

3. Start gathering your documentation

Regardless of what type of mortgage or mortgage product you are applying for, the lender is going to want to see certain documentation. By having this all gathered and ready, you are going to simplify the process considerably.
For example, items you will need if you are applying for a first mortgage include proof of down payment, income statements, etc. while if you are applying for a second mortgage or refinance, you will require statements from your current mortgage and income tax documents.

This is not a complete list, so be sure to ask your mortgage broker for a list of the documents you will need.

4. Be honest.

In preparing to apply for you mortgage, also remember that it’s important to be honest. While it can be tempting to stretch the truth about your income or financial situation, it is never in your best interest to do so.  When you are completely honest with your mortgage broker, it helps them to put together the best possible solution or mortgage advice for you.

While the mortgage application process can seem complicated, you will find that it is much simpler if you can prepare ahead of time. If you would like to learn more about how you can prepare for your mortgage application, give me a call today.
 

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4725 Dorchester Road, Unit B4, ON. L2E 0A8 irmasebastiano@rmabroker.ca 1 - (905) 321-9396
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